Amazon and USPS Seal Landmark Delivery Deal

Amazon.com announced a new agreement with the U.S. Postal Service to retain 80% of its package deliveries, averting a larger cut. The deal is crucial for the USPS, which faces financial challenges, as Amazon continues expanding its delivery operations but not enough to replace USPS's extensive network.

In a significant move, Amazon.com has announced a new agreement with the United States Postal Service (USPS) that will maintain 80% of its existing package deliveries through USPS. This comes as a relief to the cash-strapped postal system, which risked losing one of its largest revenue sources.

The agreement, first reported by Reuters, ensures USPS will continue handling a substantial portion of Amazon's deliveries, vital for the agency that faces ongoing financial struggles. With an annual budget of roughly $80 billion, USPS relied on $6 billion from Amazon in annual revenue, according to sources familiar with the deal.

Amazon had previously voiced concerns over USPS's intentions to auction its last-mile delivery network. The tech giant plans to spend over $4 billion to expand its U.S. rural delivery network by 2026 but will not rival USPS's extensive reach. Amid rising transportation and fuel costs, USPS is seeking an 8% price hike for package deliveries, and a potential increase of first-class stamp prices to mitigate losses.